WhiteFiber Q2 Earnings Call Highlights

Key Points

• Q2 revenue rose 54% to $28.8 million, led by cloud services growth and higher colocation revenue. Adjusted EBITDA increased to approximately $5.5 million, though WhiteFiber reported a $15 million net loss, including costs tied to a customer termination.
• WhiteFiber began customer deployment at its NC-1 North Carolina campus, with the full 40 MW of contracted capacity expected to reach run-rate billing by the end of August. The 10-year agreement represents approximately $865 million in contracted revenue, while proposed secured financing remains uncertain.
• The company signed new multiyear cloud agreements worth more than $540 million in aggregate contract value, including GPU deployments for Baseten and Prime Intellect. WhiteFiber ended the quarter with $56.1 million in cash, $143 million in deferred revenue and $83.2 million in new project-level financing.

WhiteFiber NASDAQ: WYFI reported second-quarter revenue growth and outlined progress across its North Carolina colocation campus, Canadian facilities and cloud services business, as management emphasized a strategy centered on contracted infrastructure, customer prepayments and project-level financing.

Revenue for the second quarter of 2026 rose 54% to $28.8 million from $18.7 million a year earlier. Cloud services revenue increased to $23.8 million from $16.6 million, while colocation revenue climbed to $4.7 million from $1.7 million, primarily due to the contribution from the MTL-3 site operating under its Cerebras agreement.

Chief Financial Officer Justin Zhu, who recently succeeded Erke Huang in the role, said gross profit excluding depreciation and amortization was $17.1 million, producing an approximately 59% gross margin, compared with $11.5 million and a 51% margin in the prior-year period. Adjusted EBITDA increased to about $5.5 million from $3.3 million, while net loss totaled $15 million, or $0.39 per diluted share.

The quarter’s cloud services revenue included approximately $12.3 million tied to a previously disclosed customer termination. WhiteFiber recorded roughly $4 million in related expense payable to a GPU lease provider in cost of revenue, along with approximately $2.2 million in bad-debt expense within general and administrative costs.

NC-1 Moves Into Customer Deployment

Chief Executive Officer Sam Tabar said NC-1, the company’s North Carolina facility, has entered active customer deployment. About 20 megawatts of IT capacity is available for Nscale and its investment-grade offtaker to install and test equipment, and initial billing has begun for the first tranches of capacity.

WhiteFiber expects the remaining capacity to be turned over progressively through August, with the full 40 MW of contracted IT load reaching full run-rate billing by the end of the month. The 10-year NC-1 agreement represents approximately $865 million of contracted revenue, according to Tabar.

The project’s ramp took longer than originally anticipated because of switchgear delivery and commissioning issues, though Tabar said those issues have been resolved and the contract economics have not changed. He added that completing the project required coordination among WhiteFiber, its customer, the utility, equipment vendors and construction partners.

WhiteFiber expects Duke Energy to provide a delivery schedule for an additional 45 MW of gross capacity at the site. Nscale has priority notification rights under its agreement, though executives said they have received strong inbound interest from other prospective counterparties. The company is also working with Duke Energy to evaluate a potential additional 200 MW of power, which could bring NC-1 to roughly 300 MW gross over time, subject to the utility process.

Management said it has entered exclusivity with a consortium of lenders for proposed secured financing for NC-1. The parties have begun diligence and are negotiating definitive documentation. Tabar said the financing process has taken longer than expected and cautioned that there is no assurance it will close on favorable terms or at all. If completed, the financing would return a significant portion of WhiteFiber’s invested capital and support development of future sites.

Cloud Contracts Expand Contracted Revenue Base

WhiteFiber said it has signed new multiyear cloud services agreements representing more than $540 million of aggregate contract value over their initial terms. Based on contracts signed so far, the company expects its cloud services portfolio to generate more than $200 million of annualized revenue once fully deployed.

• A three-year agreement with Baseten calls for WhiteFiber to deploy 1,392 NVIDIA B300 GPUs at a third-party Ontario data center. The agreement represents about $165 million of initial contract value, with service targeted to begin in November. Baseten has options to extend for up to two additional years.
• A three-year agreement with Prime Intellect covers deployment of 576 NVIDIA Vera Rubin 200 GPUs in Canada. The approximately $108 million agreement is targeted to begin service in the second quarter of 2027.
• The company continues to advance a previously announced five-year Paris-region deployment representing more than $160 million of contract value, with a targeted end-of-September ready-for-service date.
• A five-year agreement with an existing customer covers 576 NVIDIA B300 GPUs in Iceland, representing approximately $87.5 million of initial contract value plus potential revenue-sharing upside. Deployment is expected to begin later this year.

Michael Francisco, WhiteFiber’s vice president of cloud services, said the company evaluates cloud deals at the project level and seeks high-quality customers, positive cash flow through a contract’s life and limited capital requirements from WhiteFiber. Customer prepayments and third-party equipment financing are intended to reduce the company’s equity contribution to deployments.

Francisco said customers are increasingly considering longer-duration agreements as they seek sustained access to GPU capacity and evaluate the total cost of ownership or leasing. He also said WhiteFiber is focused on fulfilling contracted customer demand rather than speculative GPU purchases in the near term.

Pipeline, Managed Services and Networking Initiatives

WhiteFiber plans to develop about 5 MW of gross capacity at its MTL-2 site, targeting completion around year-end. The company is evaluating traditional colocation and a vertically integrated model combining data center infrastructure with cloud services. MTL-1 continued to perform steadily, supported by customer renewals, while MTL-3’s Cerebras deployment continued to perform well.

Management also identified a potential next colocation site that could support approximately 60 MW in 2027 and scale to more than 250 MW over time. The site has passed substantial diligence, and WhiteFiber is negotiating a purchase agreement while completing its evaluation. Executives said the company’s retrofit-first approach focuses on facilities that can be converted and brought to market faster than greenfield projects.

For cloud growth beginning in 2027, WhiteFiber entered an agreement with KRAMBU that provides exclusive access to 100 MW of liquid-cooled colocation capacity, with potential expansion over time. Francisco said the arrangement aligns data-center power availability with WhiteFiber’s GPU supply chain and customer deployment plans.

The company is also pursuing managed services opportunities, in which customers fund hardware and data-center capacity while WhiteFiber deploys and operates the infrastructure. Francisco said the model could produce meaningful margin from the start of a contract because WhiteFiber would not bear the related equipment financing and data-center costs.

Finally, WhiteFiber said it demonstrated 111.2 terabits per second of bandwidth with guaranteed sub-millisecond latency across 83 kilometers during the quarter. The company is targeting an initial commercial launch of its patent-pending cross-data-center networking technology by September, with potential uses including linking separate sites into a virtual supercluster and, over time, possible licensing or other third-party commercial structures.

WhiteFiber ended the quarter with $56.1 million in cash and cash equivalents and approximately $143 million in deferred revenue, primarily tied to customer prepayments for NC-1 and cloud services deployments. It added about $83.2 million of project-level equipment and bridge financing during the quarter.

About WhiteFiber (NASDAQ:WYFI)

We believe we are a leading provider of artificial intelligence (“AI”) infrastructure solutions. We own high-performance computing (“HPC”) data centers and provide cloud-based HPC graphics processing units (“GPU”) services, which we term cloud services, for customers such as AI application and machine learning (“ML”) developers (the “HPC Business”). Our Tier-3 data centers provide hosting and colocation services. Our cloud services support generative AI workstreams, especially training and inference.

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